DeFi staking is a practice that enables a user of a Decentralized Finance (DeFi) Platform to act as a validator for transactions and earn profit for doing it so. DeFi skating has become one of the most trendy topics in the DeFi Market today for enabling Cryptocurrency holders to generate passive income by staking their cryptocurrencies. Since the number of Decentralized finance wallets has crossed 30 Million on Ethereum, the staking concept has been widespread even further. Wealth creation has been one of the most focal points for many crypto service providers and protocols. Skating is one lucrative way for DeFi users to monetize their crypto assets, above and beyond crypto trading. Also, POW (proof-of-work) is not a very sustainable model for blockchain. As a result, most blockchains are shifting to or adopting POS (proof-of-stake) consensus. With that Defi staking seems to have a sustainable and lucrative future. In this context, let’s understand Defi staking and Defi staking platform.

Many users of centralized staking platforms have taken a keen interest in knowing what a DeFi staking platform is and how the whole module functions? DeFi staking is an additional way to earn profits from your cryptocurrency assets by leveraging on the benefits given by the decentralized finance platform. The theory of staking in a centralized and decentralized environment can be different from each other. Before DeFi came into existence staking was considered as a process of authorizing transactions and adding a new block to the blockchain and getting compensated for doing it so. Whereas DeFi staking in its most narrow DeFinition can be referred to as a practice of locking crypto assets in a smart contract in exchange for becoming a validator in a DeFi protocol or a layer 1 Blockchain and earning the profits of performing the required duties. In a broader sense, DeFi staking is often used for all DeFi activities that require a temporary commitment of a user for the crypto assets in a DeFi staking platform.